Matt Simmons, an oil and gas industry insider, believes BP will have no choice but to declare bankruptcy within the next month:
“They (BP) have about a month before they declare Chapter 11. They’re going to run out of cash from lawsuits, cleanup and other expenses. One really smart thing that Obama did was about three weeks ago he forced BP CEO Tony Hayward to put in writing that BP would pay for every dollar of the cleanup. But there isn’t enough money in the world to clean up the Gulf of Mexico. Once BP realizes the extent of this my guess is that they’ll panic and go into Chapter 11.”
And he continues…
“BP was so certain that there wasn’t any risk (of an oil spill) that three years ago they thought the insurance industry was ripping them off, so they’re self-insured on this. How stupid! It was the best thing that ever happened to the insurance industry.”
You can read the full article here: The Gulf Coast Oil Spill’s Dr. Doom.
How about this question: Could RIG (Transocean) be far behind? Just a thought.
